Any advice on Mortgage please

Gut_Reaction

My Daughter is selling her house she bought on her own a couple of years ago. Along with a new partner they are buying their first house together. He is a first time buyer and has £30k savings. She has an as yet unrealised approx £35k equity in her unsold property. They have seen a house which has just gone on the market and would like to buy before it is snapped up by someone else. The house is circa £200k. He earns about £25k and she earns about £30k but secure long term jobs. Is there a scheme or any mortage provider who would look at this without my daughter selling her house? Her brother has offered to rent it from her long term which would comfortably cover her current mortgage.

[Deleted User]

They won't be classed as first time buyers if she is included on the mortgage

Gut_Reaction

That's fine as long as they can get one at a decent interest rate without selling her house.

[Deleted User]

You could see if a lender will support a 2nd home loan. Some lenders will do a 2nd residential mortgage with as little as a 10% deposit. Just have to declare the existing mortgage as an ongoing commitment.
You could do the new purchase with the savings and leave the old property to sell in the background.

Just factor in increased stamp duty costs

Gut_Reaction

Increased stampt duty costs?

foxy-stoat

She will need consent to let, they will unlikely agree if she wants to rent it out to family.

Why not just put the house on the market ASAP rather than servicing 2 mortgages, becoming a Landlord and have all the extra income tax hassle, has she tried to work out if it is worth renting?

davidmcn

Gut_Reaction wrote: »

Increased stampt duty costs?

Yes, there's a higher rate if you already own a house.

Gut_Reaction

Even if in only one name?

Gut_Reaction

Her house is on the market but no offers as yet.

davidmcn

Gut_Reaction wrote: »

Even if in only one name?

Yes, if either buyer already owns a property then the additional rate of SDLT applies to the whole price.